Drone Co. Secures Major Order From Partner for Components

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Unusual Machines Inc. (UMAC:NYSEAMERICAN) announced in a release that it has secured a US$800,000 order from Red Cat Holdings Inc. (RCAT:NASDAQ), a drone technology company specializing in integrating robotic hardware and software for military, government, and commercial use.

The order includes Unusual Machines' BLUE UAS listed Aura Analog Camera, Aura VTX, Brave Flight Controller, Brave ESC, HDO+ Goggles, and motors, which will be incorporated into Red Cat's FANG™ drones. This supports the ongoing demand for U.S.-made, NDAA-compliant systems in defense, public safety, and other government agency applications.

"High-quality, NDAA-compliant components are now table stakes — what truly matters is how fast you can deliver them," said Stacy Wright, EVP of Revenue at Unusual Machines. "This order is another example of how our manufacturing readiness and speed-to-market capabilities help customers stay competitive in fast-moving government programs."

After working with Unusual Machines for the past year and a half to produce FANGs, Red Cat is ready to bring the American-made FPV drones to market, said Red Cat Chief Executive Officer Jeff Thompson.

"This partnership strengthens our ability to deliver high-performance, NDAA-compliant systems that defense and public safety operators can trust are secure, reliable, and available when and where they are needed," Thompson said.

Unusual Machines said it continues to expand its role in the domestic drone supply chain, providing essential components that accelerate delivery across defense, enterprise, and consumer markets.

Strategic Logix Order

On September 30, the company announced a US$12.8 million order for parts supporting Strategic Logix's Rapid Reconfigurable Systems Line (RRSL). This order underscores the rising demand for NDAA-compliant unmanned aerial vehicle (UAV) solutions that can be deployed at scale to meet operational needs. Unusual Machines is the primary supplier of NDAA-compliant components, including its BLUE UAS listed Aura Analog Camera, Aura VTX, Brave Flight Controller, and Brave ESC for the RRSL line.

Developed by Strategic Logix, the RRSL is an interoperable UAV platform with configurations starting at US$800, offering manual, autonomous, and fiber-enabled options. The order includes more than 160,000 components manufactured by Unusual Machines, such as ground control systems, highlighting both the scale of demand and the company's crucial role in enabling production.

"Our mission is clear — get U.S.-made innovation into warfighters' hands faster," said Strategic Logix Chief Executive Officer Jeremy Schnipke said at the time. "The RRSL is more than a product line — it's a foundation for partnership. By working alongside Unusual Machines and a coalition that includes defense leaders, we can move with speed today while building the framework for deeper government relationships."

Litchfield Hills on October 2 increased its target price to US$25 per share for the U.S. drone components manufacturer, which was trading at US$14.86 per share at the time of Analyst Barry Sine's report. This suggests a potential return of 68% for investors. Unusual Machines remains a Buy.

"Unusual Machines has made a series of transformative moves over the past month, many of which we believe the market has yet to appreciate fully," Sine wrote.

Production and deliveries are set to begin in the fourth quarter, reflecting careful planning and a rigorous approach to defense requirements. The order also indicates the growing demand for low-cost, adaptable drones.

"We've been deliberate — maintaining the discipline and flexibility necessary to scale with the industry," said Wright. "That foundation lets us execute on short timelines with reliability as demand develops. Strategic Logix's extensive track record of delivering for defense programs aligns perfectly with our role as a reliable link in the U.S.-built supply chain for drone components."

Analyst: Company Continues to Build Momentum

UMAC specializes in manufacturing drone components, focusing on first-person view (FPV) systems for both commercial and defense applications. The Florida-headquartered company aims to establish a key position in the UAV supply chain by providing NDAA-compliant components for cost-effective, remote-piloted drones.

In July, Unusual Machines announced that its Fat Shark Video Transmitter (VTX) received approval from the Defense Innovation Unit for inclusion in the Blue UAS Framework, a designation that ensures cybersecurity compliance for Department of Defense use. The VTX is now part of a growing list of UMAC's core FPV components that meet the standards of this federal procurement program. The VTX provides analog video transmission, which is well-suited to the new combat paradigm of manufacturing low-cost drones capable of transmitting low-latency video over long distances. As a result, the company said it is expanding its production capabilities with a new 17,000-square-foot motor manufacturing facility in Orlando, scheduled to open in September.

The company has been "moving at the speed of crazy," according to Chief Executive Officer Allan Evans in several recent investor presentations, as reported by Barry Sine, an analyst at Litchfield Hills Research, in a research note dated September 24. "Collectively, we believe that these moves set the stage for a step function in growth, with enterprise revenues expected to nearly triple in 2026," Sine wrote.

Sine provided updated financial forecasts for Unusual Machines for this year and next, highlighting that the company continues to build revenue momentum. Litchfield Hills forecasts full-year 2025 enterprise revenue of US$3.5 million. UMAC's US$1.6 million goggle and camera order supports Litchfield Hills' revenue estimates for the next three quarters.

Adding the revenue from the Brave F7 controller orders should meet or exceed Litchfield Hills' US$2.5 million enterprise revenue forecast for H2/25.

The Catalyst: Defense Budgets Help Drive Adoption

According to Grand View Research, the global drone market was anticipated to be valued at US$73.06 billion in 2024 and is projected to grow to US$163.60 billion by 2030, with a compound annual growth rate (CAGR) of 14.3% from 2025 to 2030.

This expansion is largely fueled by rapid technological advancements in drones, improvements in battery efficiency, AI-driven autonomous systems, and enhanced imaging sensors, which are broadening the applications of drones across various sectors, as noted by Grand View. In 2024, North America dominated the drone market, capturing over 39% of the share. The hardware segment accounted for the largest revenue share by component, exceeding 58% in 2024, and the multi-rotor segment held the largest revenue share by product in 2024, according to researchers.

Another report by Grand View found that the global military drone market was valued at $US40.53 billion in 2024 and is expected to grow to $US87.63 billion by 2030, with a compound annual growth rate (CAGR) of 13.9% from 2025 to 2030.

This growth is driven by increasing defense budgets, the rising adoption of unmanned aerial vehicles (UAVs) for surveillance and combat operations, advancements in drone technology, and a growing demand for intelligence, surveillance, and reconnaissance (ISR) capabilities across various military applications.

The adoption of military drones is further propelled by technological innovations that enhance operational capabilities, such as improved sensor systems, high-resolution cameras, advanced avionics, and seamless integration with real-time data networks like 5G, researchers said. These advancements enable drones to perform a variety of critical missions, including intelligence, surveillance, reconnaissance (ISR), target acquisition, and precision strikes with increased accuracy and efficiency, thereby driving the military drone industry.

"Additionally, the strategic importance of drones in modern warfare, with their ability to conduct multi-domain operations and swarm tactics, is leading to increased military procurement and modernization programs," the report noted. "Governments worldwide are recognizing the cost-effectiveness of unmanned systems compared to traditional manned aircraft, motivating substantial investments to expand military drone fleets."

The Asia-Pacific region, particularly countries such as India and China, is experiencing rapid growth due to ongoing defense modernization initiatives and rising regional security concerns, making it one of the fastest-growing markets for military drones in the coming years. These combined factors create a dynamic and expanding market landscape for the military drone industry.

Ownership and Share Structure

About 7.5% of the company is owned by management and insiders, UMAC said. The rest, 92.5%, is retail and institutional investors.

Unusual Machines has 30.97 million shares outstanding as of October 2, according to Refinitiv. Its market cap is US$463.68 million. Its 52-week high and low share prices are US$23.62 and US$1.28 per share, respectively.